FAQs

The Basics

What is a novated lease? A novated lease is a salary packaging arrangement that bundles vehicle finance and approved running costs through payroll. It usually involves you, your employer, and the finance provider, with Sofin coordinating the setup and support.
How does it work? Your lease costs are budgeted and deducted from your salary in line with your employer's salary packaging process. Sofin manages the vehicle account, pays approved running costs, and helps keep the budget on track throughout the lease.
Why choose a novated lease? For many employees, the appeal is convenience, budgeting, and potential tax and GST efficiencies. It can also turn multiple vehicle costs into one easier-to-manage arrangement.
Who owns the car? You are generally the registered owner of the vehicle, and it is for your personal use. The lease is the finance arrangement that sits behind the car during the lease term.
Is there a minimum kilometre requirement? No minimum kilometre threshold is required to explore a novated lease. However, estimated kilometres still matter because they help build a realistic running-cost budget and reduce the chance of over or under-spending during the term.

Vehicle Choice and Running Costs

What vehicles can be considered? New, demonstrator, and used vehicles can often be packaged, subject to lender criteria, vehicle age, employer policy, and your personal approval outcome. In some cases, an existing vehicle may also be eligible.
Can an EV be packaged? Yes, electric vehicles can often be packaged, subject to vehicle eligibility, employer policy, and current tax rules. Sofin can show you the practical differences in cost, charging, and setup.
Can I package my current car? Sometimes, yes. If your current vehicle and finance position meet the relevant criteria, Sofin can assess whether it can be brought into a novated lease arrangement.
What costs can be included? A novated lease budget can include finance repayments plus common running costs such as registration, insurance, servicing, tyres, fuel or charging, roadside assistance, and approved accessories added at purchase.
Can I include accessories? Often yes, especially when the accessories are fitted at the time of purchase and meet lender or supplier requirements.
Can someone else drive the vehicle? Usually yes, provided the driver is licensed and the use fits within the insurance terms.
Can I pay for fuel or charging myself instead? You can, but doing so may reduce some of the convenience of the arrangement. Keeping day-to-day running costs inside the lease budget is often the easiest way to manage the vehicle and avoid surprise expenses.
What happens if my budgets change? Budgets are estimates, so small variances can happen. Sofin monitors the account and can help review the budget if your kilometres, fuel usage, or servicing pattern changes during the lease.

Changing Circumstances and End of Lease

What happens if I change employers? In many cases, the lease can continue if your new employer offers salary packaging and agrees to take on the novation. If not, Sofin can explain alternative options.
What if I go on leave or my pay changes? Let Sofin know as early as possible. A change in payroll, leave, work pattern, or salary may affect deductions and cash flow; early notice allows for budget adjustments if needed.
What happens at the end of the lease? You will usually have a few options: upgrade to another vehicle, refinance the residual and keep the same car, pay the residual and own it outright, or sell/trade the vehicle and use the proceeds toward the next step.

Getting Started

How do I get started? The best first step is a personalised quote. Sofin will usually ask for basics such as your employer, salary, preferred vehicle, estimated kilometres, and any trade-in or finance details.
Who do I contact to know more? Reach out to Sofin to talk through options in plain English before committing to anything. A quick quote or comparison is often the easiest way to see if a novated lease suits you.

FAQs

The Basics

What is a novated lease? A novated lease is a salary packaging arrangement that bundles vehicle finance and approved running costs through payroll. It usually involves you, your employer, and the finance provider, with Sofin coordinating the setup and support.

How does it work? Your lease costs are budgeted and deducted from your salary in line with your employer's salary packaging process. Sofin manages the vehicle account, pays approved running costs, and helps keep the budget on track throughout the lease.

Why choose a novated lease? For many employees, the appeal is convenience, budgeting, and potential tax and GST efficiencies. It can also turn multiple vehicle costs into one easier-to-manage arrangement.

Who owns the car? You are generally the registered owner of the vehicle, and it is for your personal use. The lease is the finance arrangement that sits behind the car during the lease term.

Is there a minimum kilometre requirement? No minimum kilometre threshold is required to explore a novated lease. However, estimated kilometres still matter because they help build a realistic running-cost budget and reduce the chance of over or under-spending during the term.

Vehicle Choice and Running Costs

What vehicles can be considered? New, demonstrator, and used vehicles can often be packaged, subject to lender criteria, vehicle age, employer policy, and your personal approval outcome. In some cases, an existing vehicle may also be eligible.

Can an EV be packaged? Yes, electric vehicles can often be packaged, subject to vehicle eligibility, employer policy, and current tax rules. Sofin can show you the practical differences in cost, charging, and setup.

Can I package my current car? Sometimes, yes. If your current vehicle and finance position meet the relevant criteria, Sofin can assess whether it can be brought into a novated lease arrangement.

What costs can be included? A novated lease budget can include finance repayments plus common running costs such as registration, insurance, servicing, tyres, fuel or charging, roadside assistance, and approved accessories added at purchase.

Can I include accessories? Often yes, especially when the accessories are fitted at the time of purchase and meet lender or supplier requirements.

Can someone else drive the vehicle? Usually yes, provided the driver is licensed and the use fits within the insurance terms.

Can I pay for fuel or charging myself instead? You can, but doing so may reduce some of the convenience of the arrangement. Keeping day-to-day running costs inside the lease budget is often the easiest way to manage the vehicle and avoid surprise expenses.

What happens if my budgets change? Budgets are estimates, so small variances can happen. Sofin monitors the account and can help review the budget if your kilometres, fuel usage, or servicing pattern changes during the lease.

Changing Circumstances and End of Lease

What happens if I change employers? In many cases, the lease can continue if your new employer offers salary packaging and agrees to take on the novation. If not, Sofin can explain alternative options.

What if I go on leave or my pay changes? Let Sofin know as early as possible. A change in payroll, leave, work pattern, or salary may affect deductions and cash flow; early notice allows for budget adjustments if needed.

What happens at the end of the lease? You will usually have a few options: upgrade to another vehicle, refinance the residual and keep the same car, pay the residual and own it outright, or sell/trade the vehicle and use the proceeds toward the next step.

Getting Started

How do I get started? The best first step is a personalised quote. Sofin will usually ask for basics such as your employer, salary, preferred vehicle, estimated kilometres, and any trade-in or finance details.

Who do I contact to know more? Reach out to Sofin to talk through options in plain English before committing to anything. A quick quote or comparison is often the easiest way to see if a novated lease suits you.